This article discusses recovering misspent body corporate funds and whether it is worth the effort.
Question: After many years of committee spending on personal pet projects, the tide has turned. Can we recoup the spent dollars or are we better moving on?
After many years of trying to halt our committee spending body corporate funds on personal pet projects ranging from the making of donations to political causes, even down to paying a committee members phone bill.
The balance of power has now finally changed in our committee. Can we recoup any of the funds that have been miss-spent in the past? Is it worth the effort and obvious pain and anguish to chase these funds from the recipients? Or, would it be better to just cut our losses and just look to a brighter future?
Answer: Short answer: no. It is not worth it and yes, you should absolutely look to start a new chapter.
I’ll give you the short answer, and the long answer.
Short answer: no. It is not worth it and yes, you should absolutely look to start a new chapter (or whatever other euphemism you’d care to use).
Longer answer: with every strata problem there is a corresponding set of solutions. This one is no different and you can go down the path of gathering the necessary evidence, seeking legal advice and initiate proceedings against the individual in question. You may like to do a cost-benefit analysis: for the amount of money you are supposedly chasing, how much will you spend recovering it and how long might that take? You may also like to think about whether other owners might have an expectation of the committee to do so (or not do so). Then make a decision, as a committee, as you might any other matter.
Again, though, I point you back to my short answer…
This post appears in Strata News #538.
Chris Irons Strata Solve E: chris@stratasolve.com.au P: 0419 805 898